TAN Registration
What is a TAN?
A TAN (Tax Deduction and Collection Account Number) is a ten-digit alpha-numeric number issued by the Income Tax (IT) department to all persons responsible for collecting or deducting tax. Under Section 203A of the Income Tax Act, 1961, it is compulsory to quote TAN on all TDS or TCS returns
Who Should Apply for TAN?
TAN should be obtained by every person responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). It is mandatory to quote TAN in all TCS or TDS transactions, including any e-TCS/TDS return, TDS/TCS payment challan and TDS/TCS certificates
Importance of TAN Number
Any person required to obtain a TAN will face difficulty filing tax returns when he/she does not apply for it. Failure to quote the TAN number in returns or documents will result in a penalty of Rs.10,000. TAN should be quoted in the following documents:
- TCS or TDS statements/returns.
- Challans for TDS or TCS payments.
- Submission of TCS or TDS certificates.
- Collection or submission of a wide variety of IT-related forms
- TAN Application Fees
- The processing fee for the TAN application is Rs.65 (including Goods and Service Tax).